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Tennessee Auto Insurance Laws Tennessee operates under the tort system. Drivers must show proof of your financial responsibility. While you are not required to carry liability insurance in order to register your car or obtain a driver's license in Tennessee, it is strongly recommended that you purchase such coverage. Bodily injury liability insurance protects you against claims for damage in an accident in which you were at fault while property damage liability insurance pays for any damages you cause to the property of others. Tennessee auto insurance liability minimums are 25/50/10: $25,000 per person for bodily injuries you cause to the other party; $50,000 for bodily injuries of two or more persons; and $10,000 for property damage you caused.
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